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Posts Tagged ‘$5 gas’

Is $4.50 a Gallon the New Gas Price “Wall”?

Nearly 9 in 10 would buy more fuel efficient car “immediately.”

by on Feb.20, 2012

A new study finds most buyers ready to switch to hybrids if fuel prices hit $4.50 - maybe.

Industry observers keep wondering what it would take to produce a wholesale shift in the American automotive marketplace.  Despite near-record prices last Spring and the brief push to $4 a gallon several years earlier, U.S. motorists have largely continued buying the products they’ve always bought.

But a new survey suggests the market could hit a “wall” at $4.50 a gallon, nearly nine of every 10 “new-vehicle intenders” telling CNW Marketing they would purchase a more fuel-efficient model “immediately” were prices to reach that level.  And the vast majority of those buyers said they would specifically be in the market for a hybrid.

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“Toss in the possibility of $5 per gallon gasoline,” said CNW Marketing director Art Spinella, and the study would suggest the hybrid – and presumably electric – vehicle markets should explode.”

Or will they?

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Oil Plunges – Have Gas Prices Peaked?

Petro traders see barrel dip below $100.

by on May.06, 2011

Has the run-up in oil prices peaked?

Maybe $5 gas isn’t so inevitable, after all – at least not for now.

Oil prices have taken their sharpest skid, this week, since the price plunge of late 2008, leading some analysts to predict that pump prices are also heading down – perhaps to $3.50 or lower – in the weeks ahead.

The unanticipated slide, which saw a barrel of crude trading for less than $100 on Thursday, follows reports that the nation’s economic situation has worsened.  Economists were wary that if oil kept climbing the U.S. might find itself slipping back into recession.

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The decline comes as President Barack Obama has stepped into the picture, asking his administration to look into potential market manipulation. During a visit to an Indianapolis hybrid transmission plant, today, the president is expected to discuss ways to further bring down prices at the pump – which had just nudged the $4.00 a gallon mark, nationally, before the petro slide.

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Is $5 Gas Unavoidable?

Nation facing economic slam - and political turmoil.

by on May.02, 2011

A rarity a month ago, $4 gas is now the national norm, some expecting $5 prices in a matter of months.

Late last year, when former Shell President John Hofmeister warned that the U.S. could see $5-a-gallon gas prices by 2012, few took the executive seriously.

“The wolf is out there,” acknowledged Tom Kloza, chief analyst with the Oil Price Information Service, and “we’ll see those numbers at some point this decade, but not yet.

Anyone who has had to fill up lately is starting to take Hofmeister’s dire forecast very seriously.  In Michigan, prices rose almost 20 cents in the last week, a pace seen across much of the country.  The Los Angeles area is already approaching the $5 mark, at least on premium fuel, and virtually the entire country is now over the $4 mark for unleaded regular at self-serve pumps.

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The surge in fuel costs is triggering a political free-for-all, President Barack Obama blasting the oil companies and demanding an end to oil company subsidies, while wild-card Republican Donald Trump has suggested the U.S. simply grab Mideast oil sources.

Ken Reidy, a contract trucker who maintains his own 18-wheel rig, said he didn’t care about the politics, “as long as someone helps me cut my fuel bill.”  Fueling up at a truck stop along Michigan’s I-94, Reidy’s eyes narrowed as he watched the numbers race seemingly every upward, ultimately handing over his credit card to cover an $895 charge for diesel.

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Gas Prices Surge to $4

Is the $5 gallon on the horizon?

by on Mar.07, 2011

A gas station in Santa Monica, CA.

Motorists in several parts of the country, notably including Southern California, have seen fuel prices surge past the $4 mark, with many industry observers predicting the country could soon see costs surge past the record figures set during the mid-2008 fuel scare.

With the situation only getting worse in Libya, one of the world’s largest sources of petroleum, analysts are now speculating not just if, but when pump prices in the U.S. could tip the $5 mark.  Economists are also worrying what the rapid rise might mean to an American economy that still seems fragile after one of the worst recessions in more than half a century.

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As of Friday, the Lundberg Survey found that U.S. fuel prices had risen 32.7 cents over the previous two weeks, to an average of $3.51 a gallon for self-serve regular.  That’s the biggest jump the American market has experienced since a 38-cent run-up between August and September 2005, according to the Lundberg Survey, which follows fuel prices in the continental U.S.  That prior record was the result of the damage done to Gulf Coast refineries by Hurricane Katrina.

“This time around, the damage comes not from nature but from people,” said Trilby Lundberg, referring to the Libyan crisis and the broader uncertainty about Mideast oil supplies as the democracy battle rages across northern Africa.

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